Outside the Box

Japan, the Persian Gulf, and Energy

John Mauldin

March 17, 2011

The Prime Minister of Japan recently stated that his nation was facing its worst crisis since World War II. While most of the world is focused on tragic images of floodwater and rubble, and fixated on radiation levels, there is a bigger picture to be examined – one that also includes energy, coal and the Strait of Hormuz.

Human nature draws our focus to the present. We look for immediate repercussions to a devastating world event. But the real advantage lies in understanding the broader perspective. In order to get this deeper understanding, you could choose to spend endless hours scouring global new sources day and night, constantly questioning their legitimacy and bias. Or you could take a better approach and hire a team of geopolitical experts and uber-intelligent analysts.

I use STRATFOR, a geopolitical intelligence firm, to keep me aware of the why and what comes next of situations I know will, in some form or fashion, affect me and my investments. For those of you currently experiencing full STRATFOR access via their 3-month free trial earlier this year (exclusively for Outside the Box readers), you know what I mean. For those new to this e-newsletter or if you've been hesitant to take the plunge into the thought-changing world of geopolitics - these guys are hard to beat.

In today's Outside the Box I'm including this week's edition of their Geopolitical Weekly report, which fully explains the Japanese PM's concerns and puts the recent major world events, from the Middle East to the Far East, in a context we all can understand. Give it a read, and if you like what you see, <<join their mailing list>> to receive free reports like this directly to your inbox every week.

John Mauldin, Editor
Outside the Box

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Japan, the Persian Gulf and Energy

March 15, 2011

By George Friedman

Over the past week, everything seemed to converge on energy. The unrest in the Persian Gulf raised the specter of the disruption of oil supplies to the rest of the world, and an earthquake in Japan knocked out a string of nuclear reactors with potentially devastating effect. Japan depends on nuclear energy and it depends on the…

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